Australian shares set to track gains in S&P 500, Nasdaq
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The news: The Australian sharemarket is set to open higher, tracking gains in the S&P 500 and the Nasdaq after softer-than-expected US inflation numbers added to investor optimism.
The numbers: Updated at 7.25am AEDT:
- ASX futures: up 18 points or 0.22% at 8,310 points
- Wall Street: Dow Jones down 0.64%, S&P 500 up 0.72%, Nasdaq up 1.61%
- Europe: FTSE 100 down 0.02%, CAC 40 up 0.30%, DAX up 0.31%
- Spot gold: down 0.01% at USD3,249.90 per ounce
- Oil prices: Brent up 2.42% to USD66.53/bbl, US WTI up 2.78% to USD63.67/bbl
- AUD: down 0.09% at 64.65 US cents
- Bitcoin: up 1.72% to USD104,592.90.
The context: The S&P 500 and the Nasdaq advanced, led by a rally in technology shares, after data showed that US consumer prices rebounded moderately in April, with headline inflation increasing 0.2% last month compared with estimates for a 0.3% increase. However, the Dow fell on the back of a 18% slide in UnitedHealth shares after the insurance bellwether suspended its annual forecast and its CEO stepped down. Traders are now betting that the US Federal Reserve could hold off on lowering interest rates until September, with two 25-basis-point cuts expected by year-end.
What to watch: Wages data for the March quarter; results from Commonwealth Bank, Aristocrat Leisure.
